Energy Management in the Former Soviet Republics: Ownership Structures, Oligarchic Powers, and National Identity

After the collapse of Communism, former Soviet republics were freed from ideological and political constraints of imposed governments. Different paths emerged as some countries concentrated on the road back to Europe and others on the return to the Russian realm of control. Foreign policies largely influenced a country_ï¿½_s energy dependency situation and varying international goals ... read moreaffected the ability to effectively handle new freedom. This thesis focuses on the cases of Estonia and Ukraine, and their varying energy management systems. Estonia is completely dependent on Russian gas supplies due to lack of reserves, yet it has been able to conduct a successful energy relationship with no conflicts and infrequent price battles. Ukraine, a country with large gas reserves that is less dependent on Russian imports, has led a failed energy relationship with Russia that has included multiple cut-offs and constant price negotiations. Why does a country that is less dependent on Russian gas lead such a tumultuous relationship full of conflict?
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This thesis concludes that three specific variables work together to result in either successful or failed energy management: ownership structures, oligarchic powers, and national identity. Research into these economic and political factors has given us an insight into the foundations for poor energy management. With application to other energy dependent countries, these results can provide a new way to analyze gas conflicts and search for solutions.
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